Due Diligence Checklist Before Transferring Your Deposit

Request the audited cash‑flow model that underpins the advertised 12% guaranteed net yield for the first three years and the 14‑16% estimated net yield from year four onward. Compare the model’s assumptions on occupancy, operating expenses and management fees with market data for comparable Ubud villas to ensure the net figures are realistic and not overstated.

Confirm the mechanism that guarantees the 12% net yield—whether it is a management contract, a reserve fund, or a performance bond. Ask for the legal instrument that secures this guarantee and verify that it is enforceable under Indonesian law. Cross‑check the projected gross yield against the net yield to understand the cost structure and confirm that the net return aligns with your risk tolerance.

Puri Sidem is offered on a 28‑year leasehold (Hak Pakai) with a guaranteed extension of an additional 25 years for 15% of the purchase price, resulting in a total usable term of 53 years. Obtain a certified copy of the lease deed and the extension clause, and have a qualified Indonesian law firm confirm that the extension right is binding and transferable to foreign investors.

Verify that the lease does not contain any restrictions on foreign ownership, sub‑leasing or conversion to a condominium regime. Request a legal opinion on the process for registering the lease with the National Land Agency (BPN) and ensure that the title is free of liens, mortgages or third‑party claims that could affect future resale.

The development comprises 16 villas with 1‑, 2‑ and 3‑bedroom typologies, each featuring a private pool. The handover is scheduled for May 2027. Request the detailed construction schedule from Bali Family Development (BFD) and compare it with the on‑site progress reports. Verify that the builder holds the necessary permits and that the project is covered by a performance guarantee or insurance policy.

Arrange a site visit or review the latest construction video to assess workmanship, material quality and compliance with the approved architectural plans. Insist on a warranty clause that covers structural defects for at least ten years after handover, and confirm the process for addressing any post‑completion issues.